ANZ likely to up Tier 1 issue to A$1 bn-sources
Australia and New Zealand Banking Group, Australia's third-largest lender, is likely to increase its Tier 1 issue to A$1 billion ($835 million) and price it at around 250 basis points over BBSW, several market sources said on Thursday.
By Agencies |
SYDNEY: Australia and New Zealand Banking Group, Australia's third-largest lender, is likely to increase its Tier 1 issue to A$1 billion ($835 million) and price it at around 250 basis points over BBSW, several market sources said on Thursday.
The bank is expected to announce on Thursday the results of the offer bookbuild which took place earlier in the week. Initial pricing suggested a margin between 250 and 290 basis points over the bank bill swap rate, but strong retail demand allowed ANZ to keep the margin on the lower side of the range, sources said.
The issue, to be rated A+ by S&P and Aa3 by Moody's, is led by a large syndicate of joint leads including ANZ, Citi, CommSec, Deutsche Bank, Goldman Sachs JBWere, JPMorgan, Macquarie and UBS.
ABN AMRO Morgans and Credit Suisse are co-managers. ANZ is the fourth Australian bank to raise this type of capital in 2008.The offer is part of a relatively new type of Tier 1 capital, called non-innovative Tier 1, that offers a cheaper form of capital compared with ordinary equity.
Banks are required to maintain Tier-1 as a cushion to protect bank deposits. On August 22, ANZ launched an offer of around A$500 million of convertible preference shares (CPS) that will mandatorily convert into ordinary shares with a 2.5 per cent discount in June 2014.
The bank is expected to announce on Thursday the results of the offer bookbuild which took place earlier in the week. Initial pricing suggested a margin between 250 and 290 basis points over the bank bill swap rate, but strong retail demand allowed ANZ to keep the margin on the lower side of the range, sources said.
The issue, to be rated A+ by S&P and Aa3 by Moody's, is led by a large syndicate of joint leads including ANZ, Citi, CommSec, Deutsche Bank, Goldman Sachs JBWere, JPMorgan, Macquarie and UBS.
ABN AMRO Morgans and Credit Suisse are co-managers. ANZ is the fourth Australian bank to raise this type of capital in 2008.The offer is part of a relatively new type of Tier 1 capital, called non-innovative Tier 1, that offers a cheaper form of capital compared with ordinary equity.
Banks are required to maintain Tier-1 as a cushion to protect bank deposits. On August 22, ANZ launched an offer of around A$500 million of convertible preference shares (CPS) that will mandatorily convert into ordinary shares with a 2.5 per cent discount in June 2014.
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